Manage Contract Rules

Advanced configuration of contracts.

Written by James Jordan Updated over a week ago

The contract application is built by specifying the rule (or rules) that apply to entries in a list of standard items. Items may be given simple per each price rules, or they may be assigned to groups; price rules can then be assigned to those groups. Groups should be used when a single price for a group of individual items should be applied, or if a more complex or variable pricing structure should be applied to items within a group. Additionally, some rules can be applied to all invoices built from a specified contract.

Testing Contract Rules

To ensure that all rules entered on a contract are correct, always check the resulting invoice pricing by clicking the preview invoice option. This will open a mock invoice that will allow you to enter any items for which you would like to test the pricing. This is the most reliable means of testing contract rules. The text on the “View Contract” page may not read exactly as the contract is being applied by the system and is therefore NOT a reliable means of making sure that a rule is built correctly by the contract.

Editing Contract Rules

Existing rules cannot be directly edited. You must delete rules and re-add new rules with the desired changes. View the “Per Each” and “Group Rules” sections below for instructions on how to delete and re-add for each of these groups.

Per Each

The most basic rule that can be applied to a single item on a contract is a per each price. This is simply built by applying a set price for an item. When an invoice or quote is built that includes the specified line item, the set price will be applied to that item.

Delete a Rule

Click “del” next to the rule.

Add a Rule

Select an item from the drop-down selector, and enter a price for that item:

then click “Add”

Group Rules

Delete a Rule

Click “del” next to the rule

Add a Rule

There are several different types of group rules. In order to add an item to a group, select the item and enter the name of the group you wish to add the item to. If the group does not exist, the first item added with the new group name will create the group. Note that the group names entered will be what appear on invoices that include these line items.

To open the group rules menu, click the “Rules” tab to the right of the orange line item selector bar. To add a group rule, click the “Add Rule” link below the “Rules” tab. Provide a name for the new rule, and a blank rule will appear. Click the “Add Rule” link on the new blank rule to start defining your group rule. Following is a summary of the various group rules that can be added.

Notes - Group rules do not apply to quotes. Group rule names will replace line item names in invoice

Unit

Used when all items in a group should have the same per each price. For example, a unit rule could be created that groups all fusible links with a unit price of $8. Resulting invoices with fusible links would charge $8 for each fusible link.

Rules

Unit - Threshold = blank, Amount = $8

Examples

Qty ——— Item —– Total

1 —— Fusible Link = $8

2 —— Fusible Link = $16

3 —— Fusible Link = $24

. ————– . ———— .

. ————– . ———— .

Range

Used when a different unit price should be applied to items depending on the number of those items on an invoice. For example, a fusible link rule can be created that will charge $10 each for the first 8 fusible links, $8 dollars each for the next 6 fusible links, and $6 dollars each for every fusible link used after that.

Rules

Range - Threshold = 8, Amount = $10

Range - Threshold = 14, Amount = $8

Range - Threshold = blank, Amount = $6

Examples

Qty ——— Item —– Total

1 —— Fusible Link = $10

2 —— Fusible Link = $20

. ————– . ———— .

. ————– . ———— .

8 —— Fusible Link = $80

9 —— Fusible Link = $80 + $8 = $88

10 —- Fusible Link = $80 + $16 = $96

11 —- Fusible Link = $80 + $24 = $104

12 —- Fusible Link = $80 + $32 = $112

13 —- Fusible Link = $80 + $40 = $120

14 —- Fusible Link = $80 + $48 = $128

15 —- Fusible Link = $80 + $48 + $6 = $134

16 —- Fusible Link = $80 + $48 + $12 = $140

Bundle

Used when flat pricing must be applied to a certain quantity of items. In addition, tiers of bundles will have pricing applied for each tier applicable. For example, a bundle extinguisher rule can be created that will charge $35 for up to 5 extinguishers inspected, an additional $20 for up to 10 extinguishers inspected, and an additional $15 for any number of extinguishers inspected beyond the 12th.

Rules

Bundle - Threshold = 5, Amount = $35

Bundle - Threshold = 10, Amount = $20

Bundle - Threshold = 100, Amount = $15

Examples

Qty —————- Item ———— Total

1 —– Extinguishers Inspected = $35

2 —– Extinguishers Inspected = $35

. ———————- . ——————- .

. ———————- . ——————- .

5 —– Extinguishers Inspected = $35

6 —– Extinguishers Inspected = $35 + $20 = $55

7 —– Extinguishers Inspected = $35 + $20 = $55

8 —– Extinguishers Inspected = $35 + $20 = $55

9 —– Extinguishers Inspected = $35 + $20 = $55

10 — Extinguishers Inspected = $35 + $20 = $55

11 — Extinguishers Inspected = $35 + $20 + $15 = $70

12 — Extinguishers Inspected = $35 + $20 + $15 = $70

Another Bundle Example

Used when flat pricing must be applied to a certain quantity of items and a set price per each unit beyond that quantity. For example, a bundle extinguisher rule can be created that will charge $35 for up to 4 extinguishers inspected, and an additional $5 for each extinguisher inspected in addition to the first 4.

Rules

Bundle - Threshold = 4, Amount = $35

Range - Threshold = blank, Amount = $5

Examples

Qty —————- Item ———— Total

Qty —————- Item ———— Total

1 —– Extinguishers Inspected = $35

2 —– Extinguishers Inspected = $35

3 —– Extinguishers Inspected = $35

4 —– Extinguishers Inspected = $35

5 —– Extinguishers Inspected = $35 + $5 = $40

6 —– Extinguishers Inspected = $35 + $10 = $45

Stack

Used when flat pricing tiers for groups of invoice items are necessary. For example, a stacked extinguisher rule can be created that will charge $30 for up to 7 extinguishers inspected, $50 for up to 12 extinguishers inspected, and $65 total for any number of extinguishers inspected in excess of 12.

Rules

Stack - Threshold = 8, Amount = $30

Stack - Threshold = 12, Amount = $50

Stack - Threshold = 100, Amount = $75

Examples

Qty —————- Item ———— Total

1 —– Extinguishers Inspected = $30

2 —– Extinguishers Inspected = $30

. ———————- . ——————- .

. ———————- . ——————- .

7 —– Extinguishers Inspected = $30

8 —– Extinguishers Inspected = $30

9 —– Extinguishers Inspected = $50

10 — Extinguishers Inspected = $50

11 — Extinguishers Inspected = $50

12 — Extinguishers Inspected = $50

13 — Extinguishers Inspected = $75

14 — Extinguishers Inspected = $75

Joint

Used when the addition of a specified invoice line item on an invoice should cause a discount in the price of another specified line item or items of lesser value. For example, a joint rule can be created that will reduce the price of a 9v battery from $5 to $0 and the price of a pressure switch from $20 to $10 when a panic door test is completed for a price of $30. Multiple joint rules can be created for cases where the presence of one item or another item should reduce the price of a single item. For example, if an annual or monthly sprinkler inspection should reduce the price of a backflow inspection, then two joint rules should be created; one rule with annual sprinkler and backflow prices specified and another with monthly sprinkler and backflow prices specified. Note that the system will look first for the more expensive of the two items in a joint rule, and set the price of the less expensive item if the more expensive is present. Joint rules will not allow for the presence of a less expensive item to set the price of a more expensive item.

Rules

Unit - Amount = $20, Group = Pressure Switch

Unit - Amount = $5, Group = 9v Battery

Joint

Joint Sub Rules

Unit - Amount = $10, Group = Pressure Switch

Unit - Amount = $0, Group = 9v Battery

Unit - Amount = $30, Group = Panic Door Test

Examples

Items ————— Total

Pressure Switch = $20

9v Battery = $5

Pressure Switch + 9v Battery = $20 + $5 = $25

Panic Door = $30

Panic Door + Pressure Switch = $30 + $10 = $40

Panic Door + Pressure Switch +9v Battery = $30 + $10 + $0 = $40

Another Joint Rule

A joint rule can also be used in combination with a bundle to represent the following contract rule: E-light inspection is $35, extinguisher inspections are $38 up to 3, then an additional $5 each after the first 3 AND E-light inspections are free with any extinguisher inspection

Rules

Unit - Amount = $35, Group = E-Light Inspection

Unit - Amount = $5, Group = Extinguisher Inspection

Joint

Joint Sub Rules

Bundle - Amount = $38, Threshold = 3, Group = Extinguisher Inspection

Unit - Amount = $0, Group = E-Light Inspection

Examples

Items ——————– Total

E-Light Inspection = $35

E-Light Inspection + (1)Extinguisher Inspection = $38

E-Light Inspection + (2)Extinguisher Inspection = $38

E-Light Inspection + (3)Extinguisher Inspection = $38

E-Light Inspection + (4)Extinguisher Inspection = $38 + $5 = $42

E-Light Inspection + (5)Extinguisher Inspection = $38 + $10 = $48

Collection

Used when a range rule should be applied to more than one group. For example, a collection rule can be created that will specify tiers of pricing for kitchen suppression system inspection. For example, one tank or two tank system inspection should cost $125 and $150 respectively for the first 3 systems, and any one tank or two tank system inspected beyond the first three should cost $75 and $100 respectively.

Rules

Unit - Amount = $75, Group = 1 Tank Suppression Inspection

Unit - Amount = $100, Group = 2 Tank Suppression Inspection

Collection - Threshold = 3

Collection Sub Rules

Unit - Amount = $125, Group = 1 Tank Suppression Inspection

Unit - Amount = $150, Group = 2 Tank Suppression Inspection

Examples

Items ———————————- Total

(1)1 tank + (1)2 tank = $125 + $150 = $275

(2)1 tank + (1)2 tank = 2x$125 + $150 = $400

(2)1 tank + (2)2 tank = 2x$125 + $150 + $100 = $500

(3)1 tank + (0)2 tank = 3x$125 = $375

(3)1 tank + (1)2 tank = 3x$125 + $100 = $475

———————————————————————-

(1)2 tank + (1)1 tank = $150 + $125 = $275

(2)2 tank + (1)1 tank = 2x$150 + $125 = $425

(2)2 tank + (2)1 tank = 2x$150 + $125 + $75 = $500

(3)2 tank + (0)1 tank = 3x$150 = $450

(3)2 tank + (1)1 tank = 3x$150 + $75 = $525

Combination

Used when a bundle should be applied to more than one group. For example, a combination rules can be created that will charge $325 for the first two sprinkler systems and the first backflow test, and additional $125 and $75 for each sprinkler inspection and backflow test respectively.

Rules

Range - Amount = $125, Group = Sprinkler Inspection

Range - Amount = $75, Group = Backflow Test

Combination - Amount = $325

Combination Sub Rules

Range - Threshold = 2, Amount = $0, Group = Sprinkler Inspection

Range - Threshold = 1, Amount = $0, Group = Backflow Test

Examples

Items ———————————- Total

(0)Sprinkler + (1)Backflow = $325

(0)Sprinkler + (2)Backflow = $325 + $75 = $400

(1)Sprinkler + (1)Backflow = $325

(1)Sprinkler + (2)Backflow = $325 + $75 = $400

(2)Sprinkler + (1)Backflow = $325

(2)Sprinkler + (2)Backflow = $325 + $75 = $400

(3)Sprinkler + (0)Backflow = $325 + $125 = $450

(3)Sprinkler + (1)Backflow = $325 + $125 + $75 = $525

Minimum

Minimums are used to charge a minimum amount to any invoice OR to a specific group of items used in an invoice. For example any invoice generated by a contract can be set to charge at least $50 by creating a contract wide minimum:

OR a contract can be set up to charge a minimum of $50 for extinguishers inspections by grouping all extinguishers inspection in one minimum group and applying a $50 minimum to that group:

Not To Exceed

Not to exceeds (NTE's) are used to ensure that invoices do not exceed a certain amount OR to specify that the prices of a certain group of items does not exceed a specified amount. For example any invoice generated by a contract can be set to not exceed $500 by creating a contract wide NTE:

OR a contract can be set up so that the price of all extinguisher inspections on a given invoice does not go over $100:

Cost Markup

Markup rules can be used to apply a specified percentage markup to an item's cost. Markup rules will only be used if there are no unit, range, etc rules that apply to the item. You can create as many markup rules as you wish, using the cost threshold to specific how much markup should be applied to a given item based on its cost.

For example, to create a rule that applies a 50% markup to the cost of all items that cost up to $100, add a rule with a cost threshold of 100 and a percent of 50. To create a second rule that marks up all items that cost between $100 and $200 by 25%, then create a rule with a cost threshold of 200 and a percent of 25.

Typically you should create a final rule with no cost threshold and a percentage that you want to apply to all items that cost more than the highest threshold that you specified. For instance, in the example below, if a third rule were added with no threshold and a markup percentage of 10, the result would be that all items costing more than $200 would be marked up by 10%.

If you want to mark up the cost of all items by the same percentage, simply create a single cost markup rule with no threshold and a percentage of markup that you want to apply.

Margin

Margin rules are only applicable to contracts used to create customer invoices from vendor bills. Margin rules will add a markup to an invoice to ensure that a certain margin will be achieved between a customer invoice and a vendor bill. For example any invoice generated by a contract can be set to markup the vendor bill to ensure a margin of 20%:

Margin rules can only be used in accounts that use vendor bills to generate their invoices.

Administrative Charge

Administrative charges can be added to all invoices for a given contract. For example, an administrative charge of $40 can be added to all invoices: